Eu Plan Boosts Esma Powers Over Crypto And Capital Markets 2025

The European Commission plans to expand ESMA oversight of MiCA crypto companies and trading venues, aiming to streamline EU markets and narrow the gap with the US.

The European Commission has proposed expanding the powers of the European Securities and Markets Authority (ESMA) over crypto and broader financial markets in a bid to narrow the competitive gap with the United States.

Published Thursday, the package would transfer “direct supervisory competences” for key pieces of market infrastructure, including crypto-asset service providers (CASPs), trading venues and central counterparties, to ESMA and strengthen its coordination role in the asset management sector.

The proposal still needs approval from the European Parliament and the Council, where it is under negotiation.

If adopted, ESMA’s role in overseeing EU capital markets would more closely resemble the centralized framework of the US Securities and Exchange Commission.

In September, France became the third European country to call for the Paris-based ESMA to take over supervision of major crypto firms, joining Austrian and Italian securities regulators.

The move followed growing criticism of Malta’s crypto licensing regime. In July, ESMA released a peer review of the Malta Financial Services Authority’s authorization of a crypto service provider, saying that the regulator only “partially met expectations.”

Due to concerns over more lenient regulations in some jurisdictions, France has also threatened to block the “passporting” of European licenses obtained from member states, raising enforcement gaps about Europe’s Markets in Crypto-Assets Regulation (MiCA).

The three EU countries also backed revisions to MiCA, including stricter rules for crypto activities outside the EU, stronger cybersecurity oversight and a review of how new token offerings are regulated.

Related: Ethereum treasury trade unwinds 80% as handful of whales dominate buys

Source: CoinTelegraph